Asia-Pacific Markets Feel the Dragon's Chill Amidst US-Iran Tensions

No Dragon Deals Here

Greetings loyal subjects. Daenerys Targaryen Breaker of Chains Mother of Dragons and now...apparently a financial commentator. It seems the squabbles of men even those across the Narrow Sea can ripple like dragonfire scorching even the most distant shores. Today we see Asia Pacific markets trembling not from the roar of Drogon but from the whispers of stalled talks between the United States and Iran. They bicker like siblings over a toy sword and the markets? Well they're the unfortunate villagers caught in the crossfire.

When Diplomacy Burns

Iran it seems has about as much interest in direct talks with the Americans as I do in marrying another Dothraki warlord. The Islamic Republic's foreign minister this Abbas Araghchi has stated that any message exchange through mediators "does not mean negotiations with the U.S." It's all very reminiscent of King's Landing isn't it? So much talking so little understanding. This reminds me when I had to deal with all those lords and ladies in Westeros they always have something to say but not much to show. For those wanting to understand more how global events can effect markets reading Global Markets Tumble Amidst Middle East Conflict: Is Your Portfolio Ready is a great idea.

The 'Talk and Fight' Phase

Thierry Wizman of Macquarie Group a man whose name sounds suspiciously like a particularly shrewd merchant from Qarth suggests this war will enter a third phase: "talk and fight." A delicate dance indeed. It reminds me of my own strategy when dealing with the slave masters of Astapor. Sometimes you must show your teeth before offering your hand.

Markets Shiver

The numbers as they say do not lie. Australia's S & P/ASX 200 dips. Japan's Nikkei 225 and Topix follow suit. South Korea's Kospi suffers a more significant blow and Hong Kong's Hang Seng index slides. It's a veritable bloodbath – though thankfully without the actual blood. One must not confuse a red market with the real thing. Though both are painful.

Oil's Calm Waters

Even the price of oil that black viscous lifeblood of modern economies remains relatively stable. West Texas Intermediate crude futures inch upwards a small comfort amidst the turmoil. Perhaps even dragons need a bit of fuel now and then.

Across the Sunset Sea

Across the sea in the United States the Dow Jones Industrial Average S & P 500 and Nasdaq Composite all managed gains. Perhaps they are too far removed from the dragon's fire to feel the heat. Or perhaps they simply have better defenses. But remember even the strongest fortress can crumble. 'When you play the game of thrones you win or you die.' – and in this case if you are not well prepared with geopolitical risk factors you lose a fortune.